ING Direct is a great place to invest for GIC’s. There are no 1K or 5K minimums, and the rates are definitely better than the banks – even better than what TD Waterhouse can offer. I’m a firm believer that any investor at my age or older should have GIC’s in their portfolio. And I think ING Direct is the place to invest for that market – no fees, flexibility, and great customer service. ING is also a great place to save for an emergency fund as well.
However, when the Bank of Canada raised the key rate this month up 25 basis points, ING Direct then lowered its 5-year GIC’s from %3.25 to %3.00 – This is the opposite of what I thought they would have done. So that doesn’t bode well for me to be holding some RRSP investment at %3.25 or less in the future. I can invest in any bond fund, or conservative dividend yielding stock and do much better.
So next Tuesday, I meet with TD Bank so they can transfer my modest ING Direct RRSP over to TD Waterhouse. Sorry ING Direct, but I’ll be back when your rates are higher. One thing I will say about ING Direct is they are really pro and have the consumer in mind. I’ll pay no transfer-out fees or admin fees when I move my money from ING to TD Waterhouse. Bonus points for ING Direct on that !
On another note, that’s going to leave me some more funds to invest next month. I would like to buy a US stock this time around. I’ve been looking at McDonalds (MCD) or Home Depot (HD), or even topping-up my AGF Management (AGF.B) holdings. Speaking of which, I sure like McDonald’s Deluxe Quarter Pounder with tomato, lettuce and bacon (YUM – but that’s another stock !)